Deeplinks Blog posts about Innovation

A few years back, we challenged a patent belonging to ArrivalStar, the notorious patent troll that was sending demand letters to municipal authorities across the country for offering real-time updates on bus and train arrival times. We got many of ArrivalStar’s claims invalidated (or at least significantly narrowed) by the Patent Office—but that was just for one patent.

Video is an enormous part of the Internet today. At least two thirds of all Internet traffic is streaming video. YouTube is the third most-visited website in the US and the world, and its users add a mind-boggling 300 hours of new content every minute—dwarfing the video produced for broadcast or cable television. And unlike television, online video came into being without government oversight, all due to one important neutral platform for innovation—the Internet.

The worst patent trolls bring weak cases and use the cost of defending a lawsuit as leverage to force settlements. A company called Joao Bock Transaction Systems LLC (“JBTS”) has elevated this business model to an art form. The company is associated with patent attorney and prolific “inventor” Raymond Joao. Apparently not content with drafting patents on behalf of others, Joao began to file his own patents. His companies have since launched dozens of lawsuits against technology ranging from streaming video to financial transactions. Of course, if you talk to the people who actually pioneered real-world technology, they’ve never heard of Joao or his companies. From all indications, Joao is solely in business of filing paper patents and forming companies to sue.

Patent trolls are still at it. A new report from Unified Patents, found that 449 patent cases were filed in district court in January 2015—a 36% increase over January 2014. The growth was fueled largely by patent trolls, who filed more than half of the month’s cases. This marks the second month in a row where we have seen an increase in patent litigation from the same period a year ago.